Interest rates live: Bank of England set to cut rate after inflation falls in boost to homeowners
Will the Bank of England cut interest rates and what does it mean for homeowners?
- The Bank of England is widely expected to cut its base interest rate on Thursday.
- The Monetary Policy Committee is tipped to reduce the rate from 4 per cent to 3.75 per cent, marking the fourth cut this year.
- This anticipated reduction follows a significant drop in the Consumer Price Index (CPI) inflation rate to 3.2 per cent in November, an eight-month low.
- The fall in inflation was primarily driven by a decrease in food and drink prices, alongside other economic indicators such as a contracting UK economy and rising unemployment.
- If implemented, this would bring borrowing costs to their lowest since February 2023, with analysts predicting further reductions in 2026.
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